Tariff Pause, Shipping Partnerships: The Week in Logistics

In this week’s roundup, tensions are rising as US President Donald Trump’s tariffs on Mexico and Canada are temporarily paused, but the looming economic impacts remain uncertain. Meanwhile, in the shipping world, Maersk and Hapag-Lloyd’s new Gemini Cooperation promises greater reliability and sustainability with a restructured ocean network. On the LNG front, freight rates have hit historic lows amid oversupply, with potential market shifts on the horizon.

Ready for more? Here is your Week in Logistics!

Trade Tensions: Trump's Tariffs on Hold for a Month

US President Trump imposed tariffs on Mexico and Canada over immigration and fentanyl concerns, but after talks with Mexico’s President Sheinbaum and Canada’s Prime Minister Justin Trudeau, the tariffs were paused for a month. The trucking industry warned of higher costs and supply chain disruptions. Economic forecasts predict negative impacts on Mexico and Canada’s GDP. Additionally, Ecuador imposed a 27% tariff on Mexican imports until a trade agreement is signed.

US Tariffs on Mexico, Canada: Economic Impact, Trade Uncertainty

The imposition of a 25% tariff on goods from Mexico and Canada could disrupt logistics, raise costs, and affect trade. While some view it as a negotiation tactic, legal and political challenges complicate its implementation. Mexico is preparing for different scenarios and defending its interests in talks with the United States.

Maersk, Hapag-Lloyd Launch Gemini Cooperation

Maersk and Hapag-Lloyd launched the Gemini Cooperation on Feb. 1 to create a flexible, interconnected ocean network. The partnership aims for over 90% schedule reliability and will integrate 340 vessels into a shared network by June. The initiative enhances connectivity, sustainability, and service reliability, focusing on East/West trade routes with 29 mainliners and 28 intraregional services. The transition will occur gradually until late May.

LNG Freight Rates Plummet Amid Market Oversupply

LNG freight rates have dropped to historic lows due to an oversupply of vessels and weak demand, particularly from China and Japan. The downturn could speed up the retirement of older LNG carriers. US LNG policies may increase supply, benefiting Mexico but also raising concerns about market oversaturation.

Renfe Strengthens its Presence in Mexico Creating a Railway Subsidiary

Renfe has received authorization from Spain’s Council of Ministers to establish a subsidiary in Mexico, reinforcing its international expansion strategy. This aligns with its goal of making global operations account for 10% of its revenue. Renfe has been involved in Mexico’s railway sector, contributing to the Mayan Train project. The new subsidiary, headquartered in Mexico City, will oversee current operations and explore future business opportunities, potentially leading to train operations in the country.